Category : News & Reports

Market News

The recent tensions between Iran and Saudi Arabia, which has led to challenges at diplomatic level, have led practitioners to believe that Savola Company, as the main stockholder of Savola Behshahr Company and the owners of Savola Behshahr Sugar Company may sell its business. However, the company’s officials have announced their plan to stay in the Iranian market, hoping to enjoy its anticipated competitive advantage once the sanctions are removed.

Banning the import of dairy products from Europe in October prepared grounds for the import of Iranian dairy products to Russia. According to Iranian officials, a pioneer domestic dairy company has managed to receive the authorization to export its products and will start exporting its products, including powder dairy products and different kinds of cheese, in late January.

Corporate Earnings

Post Bank has announced to make $0.01 EPS for the FY ending 20 March 2016, based on its Q3 reports. It was so while the company had estimated to make $0.02 EPS, relying on the Q2 reports.

In the Market

At the end of today’s trading session, the whole market ended in the green; the more we approach the implementation day, the greener the market becomes. Despite its negative Beta correlation with the market, even the Sugar sector ended in the green; tickers experienced balanced and rather positive trades. Hekmatan Sugar Company plus Naqsh-e Jahan Sugar Company were the only symbols trading negatively.

In spite of the non-determination of stock feed prices, most tickers in the Chemicals sector ended in the green and many faced buy queues. Trading 30.5 million shares and keeping its ascending trend since Saturday this week, Iranian Petrochemical Investment Group topped the sector in terms of the highest volume and faced a buy queue for the second day.

Finally, as the result of upcoming SWIFT sanctions removal, tickers in the Banking sector witnessed high volume trades; symbols including Bank Saderat and Bank Hekmat Iranian faced buy queues. In addition, Bank Gardeshgari (Tourism) has managed to receive the certification to join the Tourism Organization as the first Iranian bank. This news affected both Bank Gardeshgari and the Cultural Heritage Investment Group, as its main shareholder, in the Hospitality sector; this share has been experiencing a balanced trend recently.

Trading Halts and Reopenings

IFB at a Glance

DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.

Market News

Today, 20% of Tuka Paint Foolad Sepahan Company, equal to 14,000,000 shares, with the ticker TPSZ1, was initially offered to investors in Iran Fara Bourse at $0.04. Each brokerage house along with all branches was allocated 75,000 shares. Being established in 2006, holding $1.89 mn in capital and owning 38% of domestic market, the company’s products are mainly consumed in Steel, Construction and Automotive sectors. Managing to cover 75% of its estimations over the 9-month period, it has also predicted to make $0.01 EPS for the FY ending 20 March 2016. Besides, the company witnessed a decline in its profit margin in the previous year while a 14% increase is estimated in the current year.

Market News

According to the executive deputy of the SEO, quoted in Sena.ir, a strategic plan has been designed and confirmed by the organization’s board of directors, whose aim is to protect investors’ rights. The mentioned plan is based on the Balanced Scorecard (BSC) Model which is widely employed to align business activities to the vision and strategy of the organization, monitor the organization’s performance against strategic goals and improve internal and external communications.

Having ended their activities due to strict sanctions, an Australian trade delegation entered Iran. According to the Australian ambassador, Australia is ready to cooperate with our country in areas, including mines and mining industries, agriculture, and oil and gas sectors.

Market News

Approaching the actual lifting of sanctions, the CBI governor has ordered top bankers of the country to take the necessary actions to prepare grounds for that day. Insisting on the preparation of banking infrastructures, improving the standards for better operations has also been stressed out. As the result of sanctions removal, whose exact date has not been officially announced, banks will be able to transfer money into and out of the country with no limits, having been reconnected to the SWIFT interbank network.

Corporate Earnings

Market News

According to the managing director of Petrochemical Commercial Company, as the result of a contract inked between Iran and an international bank in Spain, the money for Iranian petrochemical exports was delivered to a bank account belonging to Iran in a European country. According to this agreement, an Escrow Account Agreement, Iran will no longer be restricted to receive its payments for petrochemical products export from different countries. Enjoying the current production capacity of about 60 million tons a year, Iran’s petrochemical industry is the biggest source of foreign earnings after oil.

Market News

Transferring most of its enriched uranium to Russia, as confirmed by Ali Salehi, the head of Atomic Energy Organization, Iran took another step to implement the JCPOA in exchange for lifting of most international sanctions against its nuclear program. Applauding the transfer, the US Secretary of State declared that this was one of the most significant steps of Iran towards fulfilling its commitments, calling it a “significant milestone”.

According to the deputy oil minister, in case of all parties remaining fully committed to JCPOA, the SWIFT restrictions seems to be lifted in the next few days. With regard to the soon-to-be-implemented removal of sanctions, Iran will face a great opportunity for non-oil export, compensating the sharp decline in global oil prices and providing other financial resources which might lead to economic growth.

Market News

In his latest speech, the governor of the CBI has criticized the high interest rates and called it as the main reason of banks resources insufficiency. Stating that such rates would be acceptable only if they are 2% higher than the inflation rate, he has also insisted on the necessity of promoting financial discipline and achieving Buzzel II and III standards. Issues, including lowering inflation, managing liquidity, and directing investment towards manufacturing were also addressed. Furthermore, calling the foreign currency exchange as a proper step towards exchange rate unification, Mr. Seif announced that establishing such an exchange is on agenda.

Market News

According to the chairman of IRI Shipping Lines Company, concurrent with the lifting of sanctions, the new Iranian Shipping lines to Africa and America will be activated, in addition to resuming the lines to Europe.

Addressing foreign investors’ interest in Iran’s capital market and the importance of improving Iran’s financial market, the rules and regulations of the capital market and commerce are being re-examined in the economic commission of Majlis, as Dr. Fetanat said. He also added that weaknesses and impediments along with the required modifications have been discussed and the role of the Securities and Exchange Organization regarding the approval of Iran’s 6th development plan and that the capital market in economy were examined. SEO President commented that this issue would be more explored in the upcoming parliament, as the current so-called Majlis members reaching their end of incumbency will be replaced by the new ones, elected on 26 Feb, 2016.

Market News

Due to the importance of joining global financial markets for the Iranian capital market, an Iranian delegation composed of top capital market executives paid a visit to Oman’s capital market, meeting with authorities, including the CMA’s executive president and managers of Oman’s Security Market and Clearing and Depository Company. The two parties discussed the possible ways to improve bilateral economic relations and financial cooperation, aiming at developing the Islamic financing instruments.

Corporate Earnings

Holding $2.18 mn in capital, Shomal-e Sharq-e Shahrood Industrial and Mining Company has predicted to make $0.002 EPS for the FY ending 19 March 2016, covering 28% over its Q2 period. It is so while the company had covered 76% of its predicted EPS the same period last year.

Possessing $16.38 mn in capital, Pasargad Oil Company has predicted to recognize $0.07 EPS for the FY ending 19 March 2016. The company has managed to cover 40% of this amount in the second quarter of the year, while it had been able to cover 48% of its estimations in the same period last year.

Owning $33.32 mn in capital, Oil Industry Investment Company has made $0.01 EPS for the 6-month period ended 22 September 2015, demonstrating a 3000% rise compared to the same period last year.

In the Market

Investors have become very cautious due to the factors, including blur economic prospect, the next year budget bill, and global oil price, driving major shares to the margin. As a result, more and more speculation pressures were seen. In today’s trading session, tickers in the Sugar sector were still in demand and most of them faced buy queues, being positively traded.

In the Metals sector, the right of Esfahan’s Mobarakeh Steel Company was about to face a sell queue at the -3% region; however, Khuzestan Steel Company and National Iranian Copper Industries Company experienced a price raise.

Rumor has it that the stock feed price has been finalized, however not announced. As a result, most tickers in the Chemicals sector were passive watchers; Iranian Petrochemical Investment Group Company was the only one facing a buy queue.

Finally, the Electricity Meter Mfg. Company, as the only symbol in the Medical Equipment sector, witnessed demand growth just like the recent trading sessions and ended with a buy queue.

IFB at a Glance

DISCLAIMER: This report has been prepared and issued by Agah Brokerage Firm on the basis of publicly available information, internally developed data and other sources believed to be reliable. The information contained herein is not guaranteed, does not purport to be comprehensive and is strictly for information purposes only. Agah does not assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. Any expressions of opinions are subject to change without notice.

Market News

In its latest report, IMF has predicted Iran’s real GDP growth to fall somewhere between 0.5% to -0.5% in 2015-16. Issues, including the sharp decline in global oil prices, tight corporate and bank balance sheets along with the investment decisions made ahead of the expected lifting of sanctions have been named as factors slowing down the economic activities since the fourth quarter of 2014-15. In addition, the report emphasizes on the bright prospect in 2016-17 as the result of sanctions removal as the main factor and higher oil production, lower costs of trade and financial transactions along with restored access to foreign assets. However, the report refers to issues which can mitigate the predicted upward trend, including the prudent monetary policy and the authorities’ goal to achieve a single digit inflation rate by the end of 2016-17.

Concurrent with foreign investors’ interest in Iran’s capital market after the lifting of international sanctions in early 2016, economic practitioners are addressing the lack of proper legal and financial structures as the impediment to attracting foreign capitals to the country. Although well-known and well-structured banks can act as a proper option, these experts believe that strengthening investment banks can be one of the steps to conducting such reformations.